The national trade group of Home Builders are predicting that home price declines will continue well to the end of 2008. With the slowing of the economy and the mortgage market shake out still a major factor home builders expect the new year home prices to continue to decline.
Builders are expecting new home construction to drop to 1.08 million new units from 1.35 million in 2007. While this again will be bad news for Home Sellers and Home Builders, Buyers will have plenty of opportunities to find great deals on housing. Here in Central Florida the housing market is loaded with many great properties where builders and sellers are offering plenty of incentives.
Buyers from the U.K. are taking notice of our depressed housing market and are flocking to Orlando to take advantage of our low prices and their strong currency exchange. Travel from international clients is up 14% due mostly to the cheap dollar but some of these travelers are hear to look at investment opportunities and vacation homes.
So while the news may be bleak for Sellers there are some bright spots that “may” help Buyers get off the fence. First is mortgage rates are holding and are very attractive. The government is finalizing several programs to help homeowners who are in risk of losing their homes to sub-prime loans which should help keep them from going into foreclosure. And lets not forget our International Buyers who will find buying properties here in the States difficult to pass by.